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FOX Business After the Bell

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Cyprus 20, California 11, United States 7, U.s. 7, Us 7, China 6, America 6, Adobe 5, Europe 5, Mexico 5, France 4, Italy 4, Emerson 3, S&p 3, Lunesta 3, Brazil 3, Siemens 2, Delta 2, William La Jeunesse 2, Imf 2,
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  FOX Business    FOX Business After the Bell    News/Business. Stock  
   market updates. New.  

    March 19, 2013
    4:00 - 5:00pm EDT  

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we have walgreens hitting a new high today, the biggest winner in that sector, as you can see on your screen, but all the games, walgreen the big winner up more than 5.4%. volatility gaining about 10% today, david asman and lauren simonetti. little bit more nervousness coming into the market this week. david: i guess it is fair to call this a turnaround. it is not doing extremely well right now, but it was on the news there was some sort of deal with the eu, but you wonder what happens now. lauren: it is a choppy market, lot of headline risk out there. what happens now is anybody's guess. david: nicole petallides asked around, let's start with the vix because that is the volatility index. cheryl just reported that was
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up. a big jump today. nicole: that is right. the vix in itself is its own investment play. we get news out of europe and cyprus. they are market moving event. ready to provide liquidity according to the existing rules, good news in a long-awaited. it is not over, it is a global issue because it happens to possibly affect us here at home. lauren: with the exception of a comerica, what was behind the banks today? nicole: there was still nervousness because of what we're seeing in cyprus and financials were hit today. but he and we saw weakness as well. david: and electronic arts, what a seesaw they have been on. a change of management, and would go way up, it didn't happen today. nicole: it was interesting.
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now the worries remain, there's high hopes in the second half of the year and for some good games in the lineup. david: thank you very much. the bells are ringing and a little bit of a turnaround although look at this, we saw what appeared to be a move toward solid double digits moments ago, that has calm down a bit and all the indices with the exception of the dow jones industrial average are in the red right now. the questions about cyprus and what they'r they are doing, thet off this decision to tax or confiscate the bank accounts, but what happens now? how will they please those at the imf and the european union? big questions remain and that is why you see the red arrows. but just squeezing out a gain for now. lauren: investors also applied to the safety of u.s. treasuries today rallied for a third day
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pushing the yield on the 10-year note to a two-week low. david: without the fed announced what they are going to announce on wednesday. oil closing below $93 per barrel, this is the first fall for crude in four sessions, dropping 1.7% settling at $92.16 per barrel. lauren: and you have to look at the retailer's underperforming the market today especially the key names. american eagle, abercrombie and fitch, all falling greater than 3%. david: the stocks are much the same. rejecting the confiscation of bank accounts but there are things going on here in america that are not as friendly. the chief research officer joining us with a disturbing new report, one that shows the united states is falling behind when it comes to being the land of opportunity for foreign
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investment. find out why in the countries full of opportunity coming up. lauren: is their opportunity to make money on jcpenney? the retailer is a buy. david: but first, we will tell you what drove the markets today with today's "data download." the dow stabbing a two-day losing streak, just barely. the s&p and nasdaq ended the trading day lower closing the red for the third straight day. consumer staples and telecom were the top performing sectors while energy and consumer discretionary leg. gold settled higher for the fourth day in a row closing of the highest level so far this month rising .4% to end a. housing starts climbed last
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month as they are beating rising demand. new construction rose .8% from a month ago to an annualized rate of 917,000. lauren: we have larry in the pits of the cme and our market panel with managing partner there, and the founder and president, let's start with larry at the cme, this is a headline driven market, some people are saying cyprus with a teacup. and the meeting tomorrow, how do you put this all together? the market was obviously confused. larry: this is the bottom line, a ton of chatter, very little real news right now. the market had been in a stalemate for quite a while. some macro headlines coming through europe the last couple of weeks. we had italy and the unknowns there.
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i think the issue is much bigger than that. david: we have adobe earnings after hours, what are the numbers? >> it is a beat. $0.35 on revenue of $1.01 billion, expecting 986.04 million, can the street expecting earnings per share of $0.31. one of the things the company is saying is retrieving strong digital marketing revenue and booking growth in the first quarter so it is a beat on both lines. david: that is good news, if earnings season continues the way adobe has been doing and others, maybe the rally continues to matter what happens in cyprus. lauren: maybe this is a little bit of a sign. a 52-week high, making all of
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these significant changes, really risky and all panning out for them right now. subscription-based, all that to say it is really moving in the right direction, good risk and the stock is showing it right now. lauren: adobe certainly a winner, thank you so much, we will see you in a few moments. david: first to you, we were talking with our cme trader whether or not this was a portend of what happened with earnings. if earnings contain no matter what happens overseas are we going to see this rally continue in our market? >> i think it is endemic of the earnings in particular mastering a whole lot more than invents in europe. but very important for folks to
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pay attention to, this cloud computing thing they have going on, it is cheaper than buying the boxed software version. so they need two solid years of creative cloud revenue get ge tt the same revenue. it'll be interesting to see how this comes together before we celebrate too much. david: they had 326 new subscribers in 2012, they're looking for 1.25 million in 2013, so they have a very ambitious goal set for themselves. >> that is really important. if this is to be taken for real, it would be important, but i want to see two years before bring out the balloons on this one. in terms of earnings growth, it matters more i think is here's going to to be a very steady earnings to that, companies will continue to report record earnings pe but near close to it and that will bring very good
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things to bear in the market, so if i am an investor, i would pay more attention to what adobe is doing than what cyprus is doing. that would be my message to the folks at home. lauren: that is an interesting point. you're bullish on tech, energy, and talk about apple because today is actually the one year anniversary of apple dividend. the number, this time last year many people thought they would unleash some of the money, so far that didn't happen. what you make of that and all the money apple is sitting on? >> as an investor in apple personally i don't care what they do in their cash by distributing it, i want to use the money to innovate than what apple has that nobody else does is this fantastic ecosystem and i believe the ecosystem is the value play, not the device. as the other devices continue to connect to it, whatever else
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they create, ecosystem people go to first is itunes and that is the value of the enterprise, people are discounting is because of iphone sales or ipad sales. i want more money out of apple but i would rather have them use the money to invest or grow their shares for me. david: we will spend some time with you. let's talk about cyprus. everybody has been pretty dismissive of it so far. there is no resolution, there is a very frightening decision on the part of the imf and all the other bureaucrats who come in and make this decision for small countries, maybe not so small countries like spain and italy, what happens a if the same kindf decisions, the same policies are put on much bigger nations which could frankly what happened here, we would have a revolt of some kind, maybe another
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revolution. what if we had that kind of discontent over there, wouldn't that shake the markets over here? >> i agree, it would shake the market a bit, but the reality is cyprus has 145%. they will probably be a solution at the end of the day, and we will avert the big issue. but the bigger issue to me is like you said the contagion effect of spain, italy and the rest of europe and how bad it will affect our market as well. aside from that, we have this trifecta of worries, the euro zone, money on march 27, by the way, and hopefully we will have an extension they are. we have our own issues to worry about that will affect market. the market is conditioned and investors conditioned that in
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the 11th hour something will come up, we will fix the market, everything will be hunky-dory to increase that we have tons and tons of money on the sidelines flooding into the market because there is no yield. the trend is upwards, you have to be in the market to get the games that i would be cautiously optimistic on the short term. long-term completely bullish. lauren: so where do you put your money right now? and the like emerging markets if we can talk about that as well. >> we're always invested in the market, over 12,000 different stocks, but of our values, i tilt toward value. i love at&t, 5.2% dividend, a mobile play which is not going away and a global play as well. ge in the portfolio, good
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multinational there. and we also need jell-o. we have craft kraft. this is a good drip. we don't have a lot of volatility. they can go off and go on their vacations and not really worry too much about the volatility. david: boring is good if you take money. here is a test of how bullish you are because of all of the uncertainty about the banks in europe, are you certain that certain banking stocks are going to continue to do well? i know you are bullish on discover, what about capital one? >> capital one is virginia-based
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so i know a lot about it because it's a lot of people who work there and pay attention to the growth they have in the richmond area. and i like the whole credit card space. i think it is one of the best places to be in financial services simply because it is really difficult to get loans from major banks but you can get money from credit card companies and i'm starting to see a lot of mail coming in for increasing credit card offers, and that is a good sign for those companies, they're trying to extend credit. you can take your pick, american express, capital one, any of them, i think they are good. ground zero has nothing to do with the country or the banking system, it is all about the deposit insurance scheme. david: there is no deposit insurance. if you take the money away, it is not insured, that is out the window. >> that is not just cyprus, if
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they protect below 100,000 euro people, this thing will go away. david: we have williams on sonoma earnings, and maybe we can get your comments. >> earnings per share came in at $1.34. revenue was 1.4 billion. dividend being increased, they announced the stock repurchase, and then president of pottery barn kids is going to become the president of williams-sonoma effective march 20. and president of the williams-sonoma branch will be leaving me third of this year. david: it seems to be moving to stocthestock up a little bit afr hours. is this going to continue, increases in dividends throughout the year? >> this is a really good opportunity for companies to solidify their shareholder base,
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great way to reward them. something you will see continuing throughout this year. they are unfortunately encumbered by federal reserve. david: i wish would've happened when the tax rate was lower on the dividends but we can never get our wishes. good to see you guys. when it comes to being business friendly to foreign investments, our neighbors to the north crack the top five, so guess what, we don't even make the top 20. coming up, chief research officer telling us what the latest study reveals and what america has to do to get back on top. lauren: up next, cheating investors out of hundreds of millions of dollars, now with physically less at his firm, they are on the auction block and we will take you there live. [ indistinct shouting ]
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lauren: shares of adobe soaring after hours following the first-quarter earnings report. let's head back to nicole on the floor of the new york stock exchange. nicole: you ar you're seeing ths jump. earnings per share beat the street with a sense versus the estimate. revenue came in better than expected and this is why you are seeing the jump. also some of the headlines crossing right now. we know for the quarter that topped analyst estimates. software sales accelerating the entire business did well, the ceo has been speaking an in makg some headlines and talking about tremendous opportunities they are facing. the heart of transition some of these are crossing according to interviews they are doing. the revenue, wants to go back to that number, versus the estimate of 985 million. we should also note the cloud, i saw something on that,
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surpassing half a million. thwe have a million mark. certainly one to be watching tomorrow as all of the deals are accelerating. david: that probably had a big deal to wife had a jump. taking investors money, destroyed the firm and many peoples jobs along with it. lauren: today what is left is up for auction, an attempt to recover some of the $200 million investors had lost. jeff flock joins us live with a look at the items up for grabs. i can't imagine what they would be, but you will s show was. jeff: i don't think they will ever get it back. phones, cubicles, flatscreen monitors, you name it, it is all here. you were an employee for how long? >> 15 years. jeff: if you saw it coming.
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>> i don't think anybody saw it coming. jeff: walk with me, if you would. that was your boss right there. >> yes, it was. jeff: walk through here with me. i tell you, the thing about it, you can buy these computers but a lot of them don't have hard drives because the forensic guys at the fbi have already been through checking all of this stuff out. that is an awful lot of money, 200 lan dollars gone from investors. >> it is shocking for everybody. jeff: i want to take you into his office around the corner here, follow me if you would. he seemed like a great guy to you. >> yes, he had a very successful company. jeff: thought it was successful. this is the desk, a beautiful desk. currently if you go online, the
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bid for this is $160. >> that is the latest, yes. jeff: hard to believe. these are polished brass. that is polished brass. certainly all the trappings of success. >> very much so, the office is just three years old. everything he did was top of the line, we all assumed we were making the money. jeff: it is amazing what you can do with other people's money. the falcons were big. you can buy the falcon now the latest bid on that one is $35, go online. the piece of chicago criminal history for you. david: it is easy to spend other peoples money and waste it. thank you. lauren: jcpenney says they have
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brands we love, but is it a stock investors should love? find out why he says it is a buy and how high he expects the stock to go. david: enlisting countries most attractive to foreign investment and our investors and guess what, the united states of america doesn't even make the top 10. not even the top 20. the chief research officer telling us where the best that can be made and why america has fallen so far. tossing and turning have given way to sleeping. where sleepless nights yield to restful sleep, and lunesta eszopiclone can help you get there, like it has for so many people before. do not take lunesta if you are allergic to anything in it. when taking lunesta,
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david: are they better places to invest in right now than the united states? according to a new report, all those countries be the united states and the opportunities they provide investors and folks try to start new businesses so why is america slipping and what companies are better bets for your money? chief research officer for the institute. good to see you again. i just saw you last night, it is an extraordinary study, but first of all why does the u.s. rank below cyprus which just announced, they turned it around, but about to confiscate peoples bank deposits. >> fortunately they couldn't have escaped the bank accounts because they would have fallen. one of the reasons they have fallen so much is federal state and local debt relative to gdp, we have seen a tremendous increase in the u.s. in the past
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five years and also the financial regulations and lack of clarity and oversight required makes the u.s. a much less transparent place to operate in the financial world. david: these other countries above the united states, they spell out more clearly what the regulations are, is that right? >> they have fewer restrictions on them and not as cumbersome to understand how to operate. david: that is extraordinary. but what companies two countries like chile, italy, france, cyprus. france, which was funny, jay leno used to make jokes about how stupid those regulations were, they're more clear than we are now? >> they have some lack of transparency that right there the margin were right behind france, number of things we can do, so it easier to start a business in the u.s. then it is
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in france, so it depends on which area you are looking to invest in. >> is easier to start a business in one company is as compared o others. much easier to start up than some of the countries above it on your list? >> that is correct. say i'm looking at these awful interest rates, they are so low, looking to go outside the country, what would i be looking at specifically about what makes a country a good bet? >> you want to make sure countries have the rule of law, look at regulatory climate around the world, your rights will be protected as both a property owner as well as their
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assets. the whole range of factors are very important and you have to look at investors much have higher rate of return, countries that can offer those higher rates of return. better investments can be made across the borders. david: dimension to cyprus. property rights used include stuff like bonds when you buy a bond, you're buying a bet that is secure, as we saw the government took some of that away in the financial crisis here in the u.s., the backdrop of our racing a little? >> it certainly shows up in the various qualitative measures that are in here when you ask about how secure is the credit structure, shows up in those measures and the u.s. dropped.
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david: finally, i assume if they eventually go ahead and confiscate the bank deposits we would at least be above them, am i correct? >> we would be above them, they would drop substantially. david: great to see you, regulations on the report. lauren: sometimes the road to opportunity takes you through other countries. up next, focusing even deeper into the emerging market and the publicly traded companies that stand to make money off of them, money you could be making. stay with us. investor. yeah, i'm a serious investor but i'm busy guy. it used to be easier but now there are more choices than ever. i want to know exactly wh i am investing in. i want to know exactly how much i'm paying. i want to use the same uff the big guys use.
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♪ the 2013 c-class coupe. ♪ starting at $37,800. ♪ david: it is time for a look at today's market drivers. the dow is just barely eking out gains in the final minutes of trading, snapping a two-session losing streak. s&p and nasdaq extended their lossesing their day lower for the third straight session as investors reacted over uncertainty about future of cyprus. this is the first three-day losing streak for the s&p this year. consumer and energy stocks were the day's the biggest laggards. that sent traders into the safety of gold. gold climbing for the fourth straight session. adding $6.77, to $1611 an
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ounce for gold. this is the highest close since february 26th. after jumping double digits yesterday, the volatility index, the vix, posted double-digit gains once again. the so-called fear gauge closing higher by almost 8%. call options on the vix which pay off if there is a rise in the index, hit a record 7.5 million contracts so far this week. lauren? lauren: emerging markets are off to a sluggish start this year on track for their longest losing streak since november. david: despite slow growth we have someone who says there is still ways to make money in undeveloped regions. we have peter newell, senior portfolio manager. always a pleasure to see you. first off we talked with the milken institute guy how fast some countries are growing. sometimes statistics can mislead you. people look at china, see unbelievable 9% growth rate, first of all if you believe the government is telling you the truth about that but
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that doesn't always track specifically with the returns on the investment in these country, right? >> absolutely. we city a study as a matter of fact. we always felt gdp growth is not correlated to stock market earns. david: look at united states we've been growing at miniscule levels yet the stock market is booming. >> let's take the example of china and mexico. we go back since we have data since 1995 china has grown faster than any country in the world, gdp growth 9.5%. david: put that chart back up, please. the blue line growing up, that is not china. that is mexico. mexico hasn't been growing as fast as china but market returns are much bigger. >> mexico is 2.7% gdp over same period of time much like the united states. mexico returned 12.8% annually. relative to china, 1.8% annually since 1995. that is substantial difference compounding one's wealth. lauren: that is why you look
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beyond the countries and you focus on the consumer trend and companies in some of these emerging markets. >> that is absolutely correct. what you see now in the emerging markets is a bifurcation between companies with sustainable earnings growth, durable demand for products, good management and companies more globally cyclical oriented. i give you an example. in brazil, the two largest companies are petrobras and valle. last five years they compounded negative 6% each year. the tobacco distribution and ambev, which is beer distribution compounded in excess of 25% per year that is astonishing differential. sail thing is true in india, compare nestle india, indian tobacco corporation to reliant. david: let me give awe tougher example, argentina right next door to brazil. argentina has a couple companies doing very well i happen to know of. we reported on them here. however the government is run by a woman who is, i would say nuts but let's say
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not business-friendly, mrs. kirschner the president of argentina. she is likely at a moment's notice to nationalize a company or create a new regulation or tax that could destroy that company. if you find a good company in argentina do you go for it despite the fact it is run by somebody you don't like? >> despite that i don't think she likes the new pope either. david: that's right. that's right. what about that? what if you find a good company in a place run by somebody that is wrong? >> generally good question but we don't. we've owned one russian stock for eight last 18 years for a very limped time. the environment they operate in is not what we're looking for sustainable growth over a period of time. lauren: so many of these emerging markets have rampant corruption. last week i was in vietnam. i was in cambodia. that is all i heard. so as an investor do you want to go into a government where the company has to, pay money here and there to get what they want done? >> no, you don't.
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and not that even in our own country this has never happened before, as it has. but you have to be selective. there's a lot of lack of transparency in the russian market and the chinese market. there is issues in the indian market as well but there are still companies with great corporate governance that have a long operating history of providing shareholders with the kind of returns that help them achieve --. david: the problem you're company peting with investors like chinese investors who are willing to bribe and the chinese are everywhere in these emerging markets. >> well they are, and it is sad if you looked at the situation with sino forest, there wasn't timber there. you have to be extremely careful, or as we feel we're not compelled to do anything with our clients money except find something that has the characteristics we're looking for that's a trustworthy, virtuous business that we think is sustainable. so we own 50 stocks out of a possibility of 15,000. and that is how we navigate the waters of those sort of
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difficulty. >> that's how you make money. find the right stock. thank you so much, peter newell. david: good to see you, peter. lauren: managing director and senior portfolio manager. thank you. david: coming up what does cyprus and california have in common? a lot more than you might think. both are looking to take other people's money. although the parliament in cyprus voted down the latest propositively. california has already enacted a way to do it. retroactive taxation. that story is coming up. lauren: wow! up next struggling retailer jcpenney a buy? we've got an analyst who says yes. find out why and just how high he thinks this stock is going to go. ♪ . at tyco integrated security, we consider ourselves business optimizers.
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>> i'm adam shapiro with
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your fox business brief. it was a mixed day on wall street as all eyes remained on the developments in cyprus. the dow the only major average to have a gain. yahoo! is reportedly in talks to have a controlling stake in video site daily motion. the tech giant could buy as much as 75%. with the ability to buy the remaining 25% in the future. this would mark the first major m&a move for yahoo! ceo marisa mayor. a spokesman for yahoo! said we don't comment on rumors or speculation. statue of liberty was not damaged during superstorm sandy but several structures on liberty island were ruined including the dock for ferries carrying visitors. that's the latest from the fox business, giving you the power to prosper.
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lauren: we have breaking knew news on cyprus. sources tell dow jones that ecb officials are working on capitol -- capital controls when the banks open. we'll keep you posted on the developing story. very driven headlines today. >> shares of struggling retailer jcpenney are down over 50% over the past 12 months. ceo ron's johnson's transformation efforts, may, we emphasize may, be paying off. lauren: one analyst, and he is with us right now, has issued a buy ratings on the company on the retailer. he is here to tell us why and how much higher jcp can go. you got to explain this one, will, when i think of jcpenney and i think of my grandma. then i see a apple executive come in spruce it up, tech it up i'm confused what the market is.
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is it grandma or people who are iphone, into everything tech? >> i think they're trying to expand their base. they have the traditional consumer they have served and maybe they have not served so well. lauren: they left. they went. >> they stayed away. i think we saw a penny tent ron johnson on the recent conference call. lauren: agreed. >> strategies to bring them back. discounting and price comparisons and that thing. he is feeling contrite what occurred there. he is looking forward to the future to find the new consumer. joe fresh launch. lauren: store within a store concept. >> store within a store. neighborhood of different kinds of brand as new brands like joe fresh which are designed to attract a junger consumer to draw in the base. lauren: you have liz claiborne. david: signature proposal for changing the company was the no-discount model. that is we're a company that as you has the lowest prices and have no discounts t ran counter to the trend among consumers. has he been repentant on
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that particular point? >> i don't think so. he has every day pricing strategy. david: can the company turn around if it is pursuing a strategy that is counter to consumer trends? >> i think that it can because one of the things that most people aren't noticing that the home category is basically dropped out of the store. when it was $20 billion a year revenue company, home was about 20% of that revenue. about $4 billion. it is about 10% of the mix right now and they're a $13 billion company. they have been retooling that pretty aggressively. we think that by launching on that front and being able to bring that consumer back into the store with a much more diversified and updated offering these guys will be able to recapture some of that business. lauren: there are some good things going on jcpenney. they really cut costs. they're very lean right now. that is certainly a positive. they're also sitting on the valuable real estate. >> correct. lauren: that must be one of the reasons why your increased buy target and buy rating? >> that's right. my focus originally is more credit focused stories.
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i think people get focused on the stock which is roughly $3.5 billion market cap right now. they have $3 billion of debt that debt sun scared debt. so the real estate is unemcouple beard. they have a portfolio of real estate of $5 billion. david: unmortgaged real estate? >> it is unencumbered. they have value for that real estate going forward. number of different ways --. david: sounds like you're saying that the only value is selling off a pieces of it. >> they will need more cash, plenty of availability. underneath the materials of their credit agreement. >> with interest rates this low they could leverage some of that real estate. >> they could borrow 1.8 billion under credit agreement of rate roughly libor plus 3%. lauren: i imagine they will need the cash. opening up all the shops within a shop and boutique stores has got to be expensive. >> they're slated to spend 800 to 850 million in cap-ex this year. that will introduce 30 new store concepts.
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david: stock at 16. you have a price target of 22. wait and see if will is right. >> appreciate it. lauren: thank you so much. the news out of cyprus is the government's failed attempt to confiscate people's money right out of the bank. closer to home in california they're trying to get money out of small businesses and owners there with a retroactive tax. that's right. a surprise grab for extra tax dollars that. we have the details right here on fox business next. thank you orville and wilbur... ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history.
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instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it. today is gonna be an important day for us. you ready? we wanna be our brother's keeper. what's number two we wanna do? bring it up to 90 decatherms. how bout ya, joe? let's go ahead and bring it online. attention on site, attention on site. now startingnit nine. some of the world's cleanest gas turbines are now powering some of america's biggest cities. siemens. answers.
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lauren: california has a combined state and federal capital-gains tax of 33%. the second highest in the world. not the u.s. but in the world. and not only that but the state also has the highest corporate tax rate on the west coast. david: unbelievable. now california decided that just isn't quite enough and it is actually enacting a retroactive tax increase on small business owners. the money they had already made and that they thought
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they paid their taxes on. fox news's william la jeunesse is here with the story. we talk about cyprus but they're doing the same thing here!. >> cyprus gets all the headlines, david because they're raiding bank accounts. many in california feel the money grab is no different. they paid their tax in full and on time legally, but now the state wants back taxes interest and penalties for five years. >> this notice was the first i heard of it. >> to brian overstreet it felt like a punch in the gut, compliments of california, a six-figure bill for back taxes. >> that is what is moat owes rage just about this situation. it is five-year look back and interest on money you had no idea you even owed. >> overstreet and hundreds like him got a letter from the state, due to a court ruling a 50% tax break for small business and startup investors was no longer available. anyone who claimed it in the last five years had to pay up. >> retroactivity is issue of fairness and credibility for
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california. >> even california's tax leaders say what the state is it doing is unfair, overreacting and overreaching, hoping to claw back some $120 million for cash-strapped california. >> problem right now we have what is the revenue is identified those folks up in sacramento will figure out how to spend it already. >> pro-business lawmakers are trying to rescind the letter, fearing high-tech investors who helped build the venture capital economy will flee to lower tax states. >> the game is rigged. you can't possibly win because we have the right to change the rules after the fact. that is what is not fair. >> governor jerry brown is reviewing the situation. now these taxpayers can request a waiver if you will, david, hoping that the governor, lawmakers hammer out a deal. if no not, no reprieve, taxman comes, 120 million going to the state from about 3,000 people who thought they were helping small business. david? david: it can happen here. it is happening here in
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california! william la jeunesse. thanks, man. disney world turning some kids away at the park gates. that story when we go "off the desk" in a just a couple minutes. ♪ your finances can't manage themselves, but that doesn't mean they won't try. bring all your finances togeth with the help of the one person who can, a certified financial planner professional. cfp -- let's make a plan.
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emerson. ♪ (train horn) vo: wherever our trains go, the economy comes to life. norfolk southern. one line, infinite possibilities.